RR No. 3-2015: Implements the provision of RA No. 10653, more particularly on the increase to P 82,000.00 of the total amount of exclusion from gross income for 13th month pay and other benefits, effectively further amending the pertinent provisions of RR No. 2-98

Key points

1. Scope of the P 82,000.00. The amount applies only to 13th month pay and other benefits under Section 2.78.1(B)(11) of RR No. 2-98, as amended. It does not apply to other compensation of an employee, such as basic salary and allowances, or to self-employed individuals and business income.
2. Coverage period. The amount applies to 13th month pay and other benefits paid or accrued beginning January 1, 2015.
3. Employer duties. Employers must correctly compute and apply the increase in year-end adjustments, and clearly show it in the Certificate of Compensation/Tax Withheld (BIR Form No. 2316). The form is issued to the employee on or before January 31 of the next calendar year, or on the day of last payment if employment ends before year-end.
4. Employee who changes employers. An employee whose employment ends and who is hired by another employer before year-end must immediately give the new employer the accomplished BIR Form issued by the previous employer. The new employer uses it for withholding tax computation and any year-end adjustment.

Who is affected

• Employees receiving 13th month pay and other benefits
• Employers
• Employees who transfer to a new employer within the year

Deadlines and effectivity

• Applies to 13th month pay and other benefits paid or accrued beginning January 1, 2015
• BIR Form No. 2316: on or before January 31 of the succeeding calendar year